The U.K.'s deficit in its goods trade with the rest of the world widened in June as exports declined more rapidly than imports, an indication that the economic recovery remains largely dependent on domestic demand.

The Office for National Statistics on Friday said the deficit in the trade in goods widened to £9.4 billion ($15.8 billion) from £9.2 billion in May as exports fell by 1.6% and imports fell by 0.4%. The decline in exports...